Note 7. – Long-term Debt

Long-term debt consisted of the following (in thousands):


	August 31,			February 28,
	2013			2013
Note payable to PNC Bank and Community & Southern Bank; interest rate at LIBOR plus applicable margin as defined per the loan agreement, minimum 4.00%, default rate 9% (the Company is in breach of covenants; therefore, 9% rate applied.) Monthly principal payments of $58 plus accrued interest, payable through December 2013 with an extension to December 2015 with a renewal of the credit agreement in December 2013; collateralized by all assets of the Company. On September 6^th, this entire liability was assumed by Community and Southern Bank. See Note 2.	$	1,182		$	1,983

Note payable to PNC Bank and Community & Southern Bank; interest rate at LIBOR plus applicable margin as defined per the loan agreement, minimum 4.00%, default rate 9% (the Company is in breach of covenants; therefore, 9% rate applied.) Monthly principal payments of $17 plus accrued interest, payable through December 2013 with an extension to December 2025 with a renewal of the credit agreement in December 2013; collateralized by two properties of the Company and one property owned by the Chief Executive Officer. Note paid off August 30, 2013.		—			2,567

Mortgage payable to bank; interest rate at Community Banks Base Rate plus 0.5% (3.75% as of August 31, 2013); monthly principal and interest payments of $5 payable through October 2021; collateralized by land and building of the Company.		304			327

		1,486			4,877
Less current maturities		(1,229	)		(4,596	)


	$	257		$	281